American Home Bank is expanding its home mortgage business with Home One, a new loan that allows home buyers to lock in low construction and permanent mortgage rates up front, with no long-term lock fees or monthly payments required during the construction process.
The loan is being marketed to builders who build 20-250 units per year, and the initial rollout of Home One is aimed at builders in the South and Mid-Atlantic region, American Home Bank announced today.
“AHB has always had a targeted and consistent focus on new-home construction to permanent mortgage lending,” said Jim Deitch, CEO of AHB. “Homeowners will benefit from AHB’s single loan closing and locked construction and permanent loan rates. This allows the customer to have certainty in their monthly payments when building a new home.”
Builders will also benefit from Home One, according to AHB officials.
The Home One loan is managed through a Web-based, automated platform called ConstructionMac. This platform corresponds to builders’ work processes and customizes the draw schedule to their building schedules. The technology platform allows all loan- and inspection-related documents and images to be posted and accessible online via the Web as well as Web-based inspections that shave days off the inspection process.
ConstructionMac will help ensure that the builder receives draw payments within three days according to a customized draw schedule that mirrors the builder’s construction process, according to the announcement. This enables builders to break ground quickly and pay their subcontractors quickly. ConstructionMac technology is owned and administered by Construction Mortgage Acceptance Corp., and AHB affiliate.
American Home Bank N.A. was formed in August 2001 as a privately held national bank headquartered in Lancaster, Pa., and has 165 employees in Central Pennsylvania. AHB specializes in new-home construction to permanent lending and closed approximately $2.1 billion in loans through 2004.
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